“In February of last year, Fortune magazine writers Erin Griffith and Dan Primack declared 2015 “The Age of the Unicorns” noting — “Fortune counts more than 80 startups that have been valued at $1 billion or more by venture capitalists.” By January of 2016, that number had ballooned to 229. One key to this population growth has been the remarkable ease of the Unicorn fundraising process: Pick a new valuation well above your last one, put together a presentation deck, solicit offers, and watch the hundreds of million of dollars flow into your bank account. Twelve to eighteen months later, you hit the road and do it again — super simple.”
The above paragraph is borrowed from a blog post titled “WHY THE UNICORN FINANCING MARKET JUST BECAME DANGEROUS…FOR ALL INVOLVED” dated 21st April 2016. See the link.
Why am I reproducing this line here? What is the point? Well, the point is quite simple. In the world of investing what seems to be too easy does not last for long. Look at the title of the referred post and you would realise how different it is from the opening paragraph.
See our post on similar lines here. Some lines from the same post are reproduced below.
“It was said that you could buy your stock at one door of Garroway’s and sell it at a profit going out of another” – Robert Wernick writes in his book “The South Sea Bubble”, describing the euphoria at the peak of the frenzy.
Few centuries later, the world was entering the digital era.
It looked so easy to make quick profits. Anthony Perkins and Michale Perkins write in their book “The Internet Bubble”: “Day traders might buy an dInternet stock at $94 in the morning and sell it at $96 in the afternoon, in what’s really a form of gambling.”
Making too much money can never be very easy. If it were, everyone would be wealthy by now.
#RidingTheRollercoaster – 137